Stock code: 000012; 200012 Short form of the stock: CSG A; CSG B Notice No.: 2019-048
CSG HOLDING CO., LTD.
SUMMARY of SEMI-ANNUAL REPORT 2019
Chairman of the Board:
Chen Lin
August 2019
I. Important noticeThe summary of semi-annual report is excerpted from the full text of the semi-annual report. Inorder to fully understand the Company's operating achievements, financial standing and futuredevelopment planning, investors should carefully read the full text of the semi-annual reportannounced on the media designated by CSRC.
This report is prepared both in Chinese and English. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.
Notice of non-standard audit opinion
□Applicable √ Not applicable
Plans of profit distribution and share converted from capital reserve in the report period which wasdeliberated by the Board
□ Applicable √Not applicable
The Company had no plans of cash dividend distribution, bonus shares distribution or shareconverted from capital reserve in the first half of the year.
Profit distribution plan of preferred shares in the report period which was approved by the Board
□Applicable √ Not applicable
II. The basic information of the Company
1. Company profile
| Short form for share | Southern Glass A、Southern Glass B | Code for share | 000012、200012 |
| Listing stock exchange | Shenzhen Stock Exchange | ||
| Person/Way to contact | Secretary of the Board | Representative of securities affairs | |
| Name | Yang Xinyu | Chen Chunyan | |
| Contact address | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | CSG Building, No.1 of the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | |
| Tel. | (86)755-26860666 | (86)755-26860666 | |
| securities@csgholding.com | securities@csgholding.com | ||
2. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accountingpolicy changed and accounting error correction or not
□Yes √ No
| The report period (Jan. to Jun.2019) | The same period of last year | Increase/decrease year-on-year | |
| Operating income (RMB) | 4,888,237,578 | 5,471,169,598 | -10.65% |
| Net profit attributable to shareholders of the listed company (RMB) | 377,342,401 | 352,837,153 | 6.95% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 283,939,444 | 334,049,718 | -15.00% |
| Net cash flow arising from operating activities (RMB) | 767,982,465 | 764,564,088 | 0.45% |
| Basic earnings per share (RMB/Share) | 0.12 | 0.12 | - |
| Diluted earnings per share (RMB/Share) | 0.12 | 0.11 | 9.09% |
| Weighted average ROE | 4.09% | 4.09% | - |
| End of this period | End of last year | Increase/decrease in this period-end over that of last year-end | |
| Total assets (RMB) | 18,447,187,070 | 19,114,234,184 | -3.49% |
| Net assets attributable to shareholders of the listed company (RMB) | 9,355,037,473 | 9,103,154,571 | 2.77% |
3. Amount of shareholders of the Company and particulars about shareholding
Unit: share
| Total amount of shareholders at the end of the report period | 147,115 | Total amount of the preferred shareholders who have resumed the voting right at end of report period (if applicable) | 0 | ||||||
| Shareholding of the top ten shareholders | |||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held (%) | Total shares held at the end of report period | Amount of restricted shares held | Number of share pledged/frozen | ||||
| Share status | Amount | ||||||||
| Foresea Life Insurance Co., Ltd. – Haili Niannian | Domestic non state-owned legal person | 15.01% | 466,386,874 | ||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.81% | 118,425,007 | ||||||
| Shenzhen Jushenghua Co., Ltd. | Domestic non state-owned legal person | 2.79% | 86,633,447 | Pledged | 69,300,000 | ||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.08% | 64,765,161 | ||||||
| Central Huijin Asset Management Ltd. | State-owned legal person | 1.86% | 57,915,488 | ||||||
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.32% | 41,044,370 | ||||||
| UBS AG | Foreign legal person | 1.15% | 35,799,049 | ||||||
| China Merchants Securities (HK) Co., Limited | State-owned legal person | 1.05% | 32,516,155 | ||||||
| Shenzhen International Holdings (SZ) Limited | Domestic non state-owned legal person | 0.94% | 29,095,000 | ||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.62% | 19,320,233 | ||||||
| Statement on associated relationship or consistent action among the above shareholders: | Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another related legal person of Foresea Life Insurance Co., Ltd, which held 40,187,904 shares via China Galaxy International Securities (Hong Kong) Co., Limited. | ||||||||
| Except for the above-mentioned shareholders, It is unknown whether other shareholders belong to related party or have associated relationship regulated by the Management Regulation of Information Disclosure on Change of Shareholding for Listed Companies. | |
| Explanation on shareholders involving margin business (if applicable) | N/A |
4. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable √ Not applicable
Changes of actual controller in the report period
□Applicable √ Not applicable
5. The total number of shareholders of the Company's preferred shares and the shareholdingof the top 10 preferred shareholders
□Applicable √ Not applicable
There were no preferred shares held by shareholders in the report period.
6. Corporate Bonds
Whether the Company had corporate bonds publicly issued and listed on the stock exchange whichhadn’t matured or fully paid until the approval day of the semi-annual reportNoIII. Performance Discussion and Analysis
1. Brief introduction to operation situation in the report period
In the first half year of 2019, the global economic situation was turbulent and risk events occurredfrequently. Under the background of a slowdown in the global economic growth and increasinguncertainty, the market environment for entity economies became extremely severe.Confronting the complex and volatile market environment, all the industries the Company involvedwere facing certain operating pressure, to which the management team and the divisions of theCompany responded positively, taking great effort to resolve difficulties, and the Companyachieved preferable business performance in the first half year of 2019. Although the Company lostpart of its revenue compared with the same period of last year due to the technical upgrade ofpolysilicon and polysilicon wafer, the Company's overall profit increased year on year. In the firsthalf year of 2019, the Company achieved operating income of RMB 4,888 million, net profit ofRMB 387 million, with a year-on-year increase of RMB 28 million and growth rate of 7.70%, andnet profit attributable to the parent company of RMB 377 million, with a year-on-year increase ofRMB 25 million and growth rate of 6.95 %.Glass industry:
In the first half year of 2019, due to the impact of the rising cost of natural gas fuel, the overallslowdown in real estate growth and the adverse effects of Sino-US trade friction on automotiveglass and industrial glass exports, the glass industry was generally under pressure, the prices ofwhich fluctuated to a certain extent. By taking a series of measures, the Company had achieved
good business performance. In the first half year of 2019, the glass industry achieved operatingincome of RMB 3,670 million with an increase of 0.13% and net profit of RMB 355 million, with adecrease of 19.90%. The detail is as follows:
Flat glass: In the first half year of 2019, influenced by the rising cost of glass production resultedby the rising price of natural gas fuel, and the slowdown of downstream demand, the operation ofthe flat glass industry was under pressure and the overall performance showed a certainyear-on-year decline. To cope with unfavorable effects of the industry, the Company effectivelyreduced the negative impact of rising fuel costs and falling industry prices through continuouspromotion of industry synergies, product structure optimization, cost reduction and efficiencyenhancement.Architectural glass: In the first half year of 2019, under the pressure of industry changes andintensified competition, the Company adopted a series of management measures, includingimproving and running marketing network to improve service quality, promoting informatizationand automation to increase production efficiency, and strengthening cost control and assessment tolower costs effectively, and the performance of the architectural glass industry bucked the trend andincreased significantly, maintaining its leading position in this industry.Solar energy industry:
Affected by the policy, PV market still was hovering at the bottom in the first half year of 2019,especially in the manufacturing market of upstream materials. Meanwhile, affected by the rapidexpansion of new production capacity in the regions with low electrovalence and the continuousintroduction of new technologies, the operation and development of the solar energy industry wereunder great pressure. In order to actively cope with the severe market environment, in addition tothe technical upgrade of polysilicon and polysilicon wafer in the early stage, in the first half year of2019, the Company adopted multi-pronged approach from industry strategy to refined management,positively expanding external cooperation of PV industry, increasing production and sales share ofhigh value-added products, continuously improving production efficiency and reducing costs,.Although the fact that some capacity had come off line resulted by the technical upgrade ofpolysilicon and polysilicon wafer had a certain impact on income, the solar energy sector as a wholeachieved a turnaround. In the first half year of 2019, the solar energy industry achieved operatingincome of RMB 775 million, and net profit of RMB 23 million, reducing losses by RMB 67million.Electronic glass and display industry:
In the first half year of 2019, the electronic glass and display industry continued to grow with theupgrading of product technology and the steady development of the market and achieved operatingincome of RMB 510 million, and net profit of RMB 105 million, with a year-on-year increase ofRMB 47 million and growth rate of 82%. In January 2019, the high-alumina electronic glassproduction base of Xianning Photovoltaic officially entered commercial operation. Throughcontinuous R&D investment and technological innovation, the product quality has graduallyimproved and the products have entered the domestic famous brand market. The construction ofQingyuan CSG Phase II, ultra white electronic glass project, is going on smoothly. When the projectis completed, the industry influence of CSG electronic glass will be further enhanced. YichangDisplay seized the opportunity of vehicle touch control market, speeded up equipment expansionand transformation projects, fully released production capacity, and greatly increased the shipmentvolume of yellow light and TP modules. The AG glass production line mainly oriented to theautomotive central control panel market is now in the trial production stage and expected to beofficially transferred to commercial operation in the second half of the year, which will become anew profit contributor for CSG's display industry.
2. Matters relevant to financial report
(1) Particulars about the change of accounting policy, accounting estimate and accountingmethod compared with last accounting period
√Applicable □ Not applicable
Details can be found on the Company's announcement of accounting policy changes.
(2) Particulars about retroactive adjustment or re-statement on major accounting errorcorrection
□Applicable √ Not applicable
There was no retroactive adjustment or re-statement on major accounting error correction in thereport period.
(3)Particulars about the change of consolidation range compared with the annual financialreport of last year
√Applicable □ Not applicable
On March 21, 2019, the Group set up a subsidiary, Zhuhai CSG Commercial Factoring Co., Ltd.. Asof June 30, 2019, the Group has invested RMB 10,000,000. The Group owns 100% of its equity.
On May 14, 2019, the Group set up a subsidiary, Zhuhai Hengqin New District CSG Glass IndustryCo., Ltd.. As of June 30, 2019, the Group owns 100% of its equity.
On June 11, 2019, the Group set up a subsidiary, Shenzhen CSG Supply Chain ManagementService Co., Ltd.. As of June 30, 2019, the Group owns 100% of its equity.
Board of Directors ofCSG Holding Co., Ltd.23 August 2019